Report: Closing state deficits with spending cuts alone could spark another recession

posted by Liz Dupont-Diehl | 4sc
December 19, 2012

CAHS has long advocated for a more fair revenue system, including higher taxes for those who can best afford them and closing corporate tax loophooles.

Today's CT Mirror points out the dire need for more revenue as a component of the state's response to a growing budget shortfall. Keith Phaneuf writes:

"Balancing the next state budget exclusively with spending cuts could be the final straw that breaks Connecticut's economic back, pushing it back into recession, the University of Connecticut's economic think-tank warned Wednesday.

"The Connecticut Center for Economic Analysis also said that such a move could trigger as many as 25,000 annual job losses between the public and private sectors combined.

"Citing new federal data, the UConn center reported back in August that Connecticut's economy was damaged in the last recession more severely than most economists originally thought....Further complicating matters, what employment growth the Nutmeg State has enjoyed has been concentrated in lower-paying service industries."

Please tell your lawmakers: Spending cuts are the wrong way to go. The Recession has put too many families in dire need of support; we don't need more austerity.

Voters told President Obama that they want to increase taxes on individuals and corporation who can afford it. Given our economic inactivity and inequality, we need to restore fairness and prevent more economic stagnation.

Now more than ever, we need to speak out and require our lawmakers and officials to realize we are all in this together.